Trade Powers Move to the Center of Democrats’ Agenda
Democrats are preparing to make President Donald Trump’s tariffs a central target when the next Congress takes office, following their decisive victory in Tuesday’s midterm elections, CNBC reported. Their strategy combines investigations with a legislative package planned for the first 100 hours, seeking to reverse major administration policies and return greater control over trade to Congress.
Rep. Hakeem Jeffries of New York, the Democratic minority leader and a potential next House speaker, has identified tariff changes as a priority. At an August press conference, he argued that Congress should reclaim tariff authority because the duties were increasing Americans’ expenses. If elected speaker, he would move legislation asserting that authority quickly to the House floor. Michigan Democratic Sen.-elect Abdul El-Sayed also urged immediate action against the tariffs, particularly those affecting Canada, in a Thursday appearance on MS NOW.
Canada Duties and Exemption Decisions Face Scrutiny
The Canada dispute is emerging as an early focus. Sen. Ron Wyden of Oregon, expected to chair the Senate Finance Committee under Democratic control, told CNBC before Election Day that repealing Canadian tariffs was an obvious priority, arguing that they raise prices and damage communities on both sides of the border. He also pledged to pursue congressional final authority over tariffs. The Wall Street Journal subsequently reported Thursday, citing Wyden, that Democrats were considering Canada their initial target.
Democrats also intend to examine how the administration awarded tariff exemptions, extending a campaign argument that linked household costs with alleged corruption among Trump’s associates. On Oct. 28, Rep. Jamie Raskin of Maryland, the senior Democrat on the House Judiciary Committee, requested records from Trump concerning those exemptions. Raskin alleged that favorable treatment went to industries whose leaders gave the president gifts. Those allegations are part of the proposed scrutiny, not established findings.
Court Challenges Already Threaten the Tariff Framework
The congressional campaign would add pressure to policies already facing several lawsuits. A case filed Oct. 20 challenges Trump’s reliance on a Great Depression-era statute to levy 50% tariffs on various Canadian products. Another suit alleges that the administration is attempting to reconstruct the broad international tariffs announced under its “liberation day” policy, which the Supreme Court invalidated in late February. The administration was subsequently ordered to return $166 billion collected under that policy, according to CNBC.
The constitutional backdrop is Congress’s power to impose taxes, portions of which lawmakers have delegated to presidents over time. Democrats contend that Trump has stretched executive tariff authority too far and want to narrow it. Since returning to office in January 2025, Trump has raised duties on imports from almost every country, setting off extended trade disputes, especially with Canada and China. The lawsuits and proposed legislation challenge different aspects of that framework; neither establishes that the remaining tariffs will necessarily be removed.
Senate Rules and Presidential Vetoes Constrain Repeal
Democrats’ electoral gains do not give them the 60 Senate votes needed to overcome a filibuster, leaving Republicans able to obstruct legislation. Trump’s veto presents another hurdle: overriding it requires two-thirds support in each chamber. Democrats would therefore need substantial Republican cooperation to enact contested tariff changes over his objections. Passing bills that Trump rejects could nevertheless help Democrats frame their arguments for the 2028 elections, even without changing trade policy immediately.
Kit Johnson, a senior tax manager in BDO’s customs and international trade group, told CNBC that alternatives could include attaching provisions to must-pass legislation or negotiating with the administration. Trump has said he would use vetoes to bring Democrats into negotiations, but has offered little indication of flexibility on tariffs. In a Wednesday call with CNBC’s Eamon Javers, he claimed 3,000 plants were under construction and that every project would stop if tariffs disappeared. That was Trump’s assertion, not an independently established outcome.
Costs, Revenue and Republican Support Remain in Focus
Trump portrays tariffs as negotiating leverage and a revenue source, while maintaining that Americans do not bear their cost. The duties are paid by importers, however, and the nonprofit Tax Foundation estimates they increased the average U.S. household’s tax burden by $820 in 2026. Before the election, Trump claimed tariff proceeds could fund $5,000 payments to every American adult if Republicans won both chambers—a roughly $1.2 trillion proposal. The Penn Wharton Budget Model puts total collections from January 2025 through July 2026 at about $300 billion. CNBC reported approximately $138 billion had been refunded since February’s ruling, with nearly $20 billion still awaiting repayment.
Public opinion and Republican decisions will help shape the next phase. In the Nov. 3 CNBC Voter Poll, 65% said tariffs had hurt the economy and 22% said they had helped. Some Republican lawmakers opposed the duties during campaigns in which challengers blamed inflation on tariffs and the Iran war. Whether more Republicans distance themselves from protectionism ahead of 2028 remains uncertain. For importers and businesses exposed to cross-border trade, the unresolved legislation, litigation and refund process leave future tariff costs unsettled.
Source: CNBC